CHICAGO, June 8 /PRNewswire-FirstCall/ -- CME Group, the
world's leading and most diverse derivatives marketplace, and Dow
Jones Indexes, a leading global index provider, today announced the
launch of the new Dow Jones CME FX$INDEX. The index will serve as
the basis of a new futures contract, which is expected to launch in
the third quarter 2010. The contracts will be listed with, and
subject to, the rules and regulations of CME.
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The new index combines six currency futures and represents the
relative value of the U.S. dollar versus six major currencies. The
currencies included are the Australian dollar, British pound,
Canadian dollar, Euro, Japanese yen, and Swiss franc. The Dow Jones
CME FX$INDEX futures contract will provide a more efficient way for
global market participants to trade a basket of six major
currencies against the U.S. dollar.
"When we launched our joint venture with Dow Jones, the goal was
to leverage the collective strengths of both companies and create
new index benchmarks across multiple asset classes, as well as
develop customized index products," said Scot Warren, CME Group's Managing Director of
Equity Index Products and Services. "The launch of the new Dow
Jones CME FX$INDEX and the futures contract based on the index is
the perfect intersection between index calculation and product
development."
"This new currency index leverages Dow Jones Indexes'
capabilities and CME Group's distribution experience and leading
role in currency futures," said Michael A.
Petronella, President Designate, Dow Jones Indexes. "The
methodology as developed by CME Group includes currency-weighting
of the index to reflect the economic realities as indicated by
current Fed data, which makes the index a suitable strategic
hedging instrument for market participants. This project is one
example of how our joint venture will work to bring differentiated
index products to market."
"Market participants have long shown an interest in trading a
basket of currencies against the U.S. dollar as a means of managing
their risk," said Derek Sammann, CME
Group's Managing Director of FX and Interest Rate Products.
"This new contract provides an easier way for customers to
more precisely and conveniently lay off global currency risk with a
single index. Additionally, portfolio managers can
dynamically hedge their positions against the index using the six
most liquid currency contracts traded at CME."
The Dow Jones CME FX$INDEX represents a basket of the most
frequently traded CME FX futures (Australian dollar, British pound,
Canadian dollar, Euro FX, Japanese yen, and Swiss franc contracts)
all traded against the U.S. dollar. The index is currency weighted
and inversely quoted. When the U.S. dollar strengthens against the
basket of currencies, the index goes down and when the dollar
weakens against the basket of currencies, the index goes up. The
Dow Jones CME FX$INDEX is calculated as the basket value divided by
US$10,000.
The Dow Jones CME FX$INDEX futures contract is designed for
efficient hedging against the basket of currencies represented in
the index.
Additional benefits include:
- Access to more than $100 billion
(USD) in daily FX liquidity
- The safety and security of CME Clearing
- Transparent market pricing
- Electronic access around the world, around the clock on CME
Globex
- Ability to manage your entire currency portfolio with CME FX
Products
For more information about the new dollar index, visit:
www.djindexes.com or www.cmegroup.com/fxindex.
About CME Group
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural commodities, metals, weather
and real estate. CME Group brings buyers and sellers
together through its CME Globex electronic trading platform and its
trading facilities in New York and
Chicago. CME Group also operates CME Clearing, one of the
largest central counterparty clearing services in the world, which
provides clearing and settlement services for exchange-traded
contracts, as well as for over-the-counter derivatives transactions
through CME ClearPort. These products and services ensure
that businesses everywhere can substantially mitigate counterparty
credit risk in both listed and over-the-counter derivatives
markets.
The Globe logo, CME, Chicago Mercantile Exchange, CME Group,
Globex, E-mini and CME ClearPort are trademarks of Chicago
Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the
Board of Trade of the City of Chicago. NYMEX and New York
Mercantile Exchange are trademarks of New York Mercantile Exchange,
Inc. COMEX is a trademark of Commodity Exchange, Inc.
All other trademarks are the property of their respective
owners. Further information about CME Group (Nasdaq: CME) and
its products can be found at www.cmegroup.com.
About Dow Jones Indexes
Dow Jones Indexes (www.djindexes.com) is a leading full-service
index provider that develops, maintains and licenses indexes for
use as benchmarks and as the basis of investment products.
Best-known for the Dow Jones Industrial Average, Dow Jones Indexes
offers more than 130,000 equity indexes as well as fixed-income and
alternative indexes, including measures of hedge funds, commodities
and real estate. Dow Jones Indexes employs clear, unbiased and
systematic methodologies that are fully integrated within index
families. Dow Jones Indexes is part of CME Group Index Services
LLC, a joint venture company which is owned 90 percent by CME Group
Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company
(www.dowjones.com), a News Corporation company (Nasdaq: NWS, NWSA;
ASX: NWS, NWSLV; www.newscorp.com).
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SOURCE CME Group